First-corporation Inc. · TSE:1430
First-corporation — FY2026 Earnings Presentation
51 slides from First-corporation's earnings presentation, Aug 5, 2026
Slide 1: Financial Results Presentation, Fiscal Year Ended May 31, 2026
July 15, 2026 Financial Results Presentation Fiscal Year Ended May 31, 2026 (15th Term)
Slide 2: Agenda
Agenda 1. Financial Results for the Fiscal Year Ended May 31, 2026 2. Progress on the Medium- to Long-term Vision “First VISION 2031” 3. Financial Results Forecast and Shareholder Returns 4. Our Unique Business Model 5. Sustainability 6. Company Overview | First-corporation Inc. | Note: This is an i
Slide 3: Executive Summary 1/2
Executive Summary 1/2 Despite lower net sales due to a reactionary decline in real estate sales and income from joint projects, profit reached a new record high, supported by improved gross profit margin on completed construction works and higher real estate gross profit margin. (1) New Record-High
Slide 4: Executive Summary 2/2
Executive Summary 2/2 Our Unique Market Environment Business Model Robust demand for condominiums Up to 3 Revenue Opportunities Improving return on capital toward 2031 in the Tokyo metropolitan area from a Single Project and increasing polarization 100.0 ✓ Demand remains robust ✓ Selling prices rema
Slide 5: Financial Results for the Fiscal Year Ended May 31, 2026
０1／ Financial Results for the Fiscal Year Ended May 31, 2026 1. Financial Results Overview 11. Segment Overview: (2) Real Estate Business for the Fiscal Year Ended May 31, 2026 12. Real Estate for Sale Holdings 2. Consolidated Statements of Income 13. Consolidated Balance Sheets 3. Breakdown of Gros
Slide 6: Financial Results Overview
1. Financial Results Overview for the Fiscal Year Ended May 31, 2026 Fiscal Year Ended May 31, 2026 (15th Term: June 1, 2025 – May 31, 2026) Operating Profit Net Sales Income attributable to owners of parent 36,417 million yen 2,896 million yen 1,882 million yen -15.7% YoY +12.3% YoY +12.8% YoY High
Slide 7: Consolidated Statements of Income
2. Consolidated Statements of Income Fiscal year ended Fiscal year ended YoY May 31, 2025 May 31, 2026 Amount Margin Amount Margin Change Change (Million yen) (Million yen) (Million yen) (%) Net sales 43,194 – 36,417 – (6,776) (15.7)% Cost of sales 38,996 90.3% 31,725 87.1% (7,271) (18.6)% Gross pro
Slide 8: Breakdown of Gross Profit
3. Breakdown of Gross Profit Fiscal year ended Fiscal year ended YoY May 31, 2025 May 31, 2026 Amount (Million yen) Amount (Million yen) Change (Million yen) Change (%) Net sales of completed construction contracts 22,641 27,224 4,583 20.2% Net sales of real estate 15,709 8,160 (7,548) (48.1)% Incom
Slide 9: Trends in Net Sales and Profit Margin
4. Trends in Net Sales and Profit Margin Net sales of completed Net Sales / Operating Income Unit: million yen construction contracts Unit: million yen 43,194 36,417 Net sales 27,224 Net sales 30,178 28,485 Completed construction contracts 25,543 19,796 21,981 22,641 16,108 2022 2023 2024 2025 2026
Slide 10: Segment Overview: (1) Construction Business
5. Segment Overview: (1) Construction Business Construction Net Sales (Construction Business) Business 27,224 Unit: million yen FY2024/5 FY2025/5 FY2026/5 Net sales 21,981 22,641 27,224 Segment income 1,894 1,740 3,036 21,981 22,641 Ratio of segment 8.6% 7.7% 11.2% income to net sales FY2024/5 FY202
Slide 11: Trends in Construction Orders, Orders Received, and Order Backlog
6. Trends in Construction Orders, Orders Received, and Order Backlog Construction Order Results *includes new construction projects only Unit: million yen 2022 2023 2024 2025 2026 2027 ⚫ Order backlog declined as net sales of completed construction (Plan) contracts progressed steadily in 2026, with
Slide 12: Construction Orders Received and Project Progress
7. Construction Orders Received and Project Progress Completed Projects / Projects in Progress Zouchu / Scheduled Project Location Units Stories Order Received Status Joint Project Handover 1 Brillia Tower Chiba Chuo-ku, Chiba, Chiba 491 B1/23 Joint Project Nov. 2022 Dec. 2026 Under construction 2 S
Slide 13: Expansion of Construction Capacity Based on Project Progress
8. Expansion of Construction Capacity Based on Project Progress Projects Under Construction in the Fiscal Year ended May 31, 2026 Project Units Stories 2023/5 2024/5 2025/5 2026/5 2027/5 2028/5 1 LIVIO MAISON Nishiazabu 52 11 2 SUNCRADLE Tsudanuma III 209 7 3 ZOOM HONGO 58 15 4 Geo Ogikubo 99 4 Cons
Slide 14: Business Environment: (1) Condominiums for Sale
9. Business Environment: (1) Condominiums for Sale Condominium Housing Starts and Units Supplied Selling Prices of New Condominiums in Tokyo and the three neighboring prefectures 9,500in the Tokyo Metropolitan Area 80,000 * Source (Housing Starts): Compiled from the Statistical Survey of Constructio
Slide 15: Business Environment: (2) Construction Costs
9. Business Environment: (2) Construction Costs Construction Material Price Index (Building Construction), Tokyo * Source: Data published by the Economic Research Association * Category: Building Construction / Area: Tokyo * Index (average for April 2020 to March 2021 = 100) 2026/3 149.3 147.8 145.3
Slide 16: Business Environment: (3) Response to Geopolitical Risks
9. Business Environment: (3) Response to Geopolitical Risks (Middle East Situation, etc.) Changes in the External Environment Our Response Strategy and Capabilities ① Early placement of orders and advance securing of materials and equipment Advance procurement of key construction materials and equip
Slide 17: Cumulative New Construction Orders Accepted
10. Cumulative New Construction Orders Accepted Cumulative New Construction Orders Cumulative FY2022/5 FY2023/5 FY2024/5 FY2025/5 FY2026/5 1st Term– Cumulative (11th Term) (12th Term) (13th Term) (14th Term) (15th Term) 10th Term Number of projects 87 6 8 7 8 4 120 Units 6,324 504 1,353 855 892 416
Slide 18: Segment Overview: (2) Real Estate Business
11. Segment Overview: (2) Real Estate Business Real Estate Net Sales Business (Real Estate Business) Unit: million yen FY2024/5 FY2025/5 FY2026/5 Net sales 6,285 20,274 8,817 8,817 20,274 Segment income 1,026 2,187 1,106 Ratio of segment 16.3% 10.8% 12.6% 6,285 income to net sales FY2024/5 FY2025/5
Slide 19: Real Estate for Sale Holdings
12. Real Estate for Sale Holdings Trends in FY-End Balance FY2024/5 FY2025/5 FY2026/5 ⚫ Actively expanding real estate for sale inventory Development land supply 34% 41% 45% to build a strong pipeline for future growth. Joint projects 56% 49% 37% ⚫ Expanding inventory value and share in our core In-
Slide 20: Consolidated Balance Sheets
13. Consolidated Balance Sheets Unit: million yen As of May 31, 2025 As of May 31, 2026 Change Reasons for Change Current assets 24,208 31,249 7,041 Decrease due to shorter payment Cash and deposits 5,400 2,624 (2,775) terms resulting from the legal amendment Accounts receivable – trade / Accounts r
Slide 21: Cash Flows
14. Cash Flows Unit: million yen Fiscal Year ended Fiscal Year ended Change Main Reasons for Change May 31, 2025 May 31, 2026 Income before income taxes 2,461 2,689 228 Depreciation 12 13 1 Interest expenses 110 193 83 Decrease (increase) in notes and accounts receivable – trade / Accounts (136) (78
Slide 22: Financial Position / ROE / Cost of Equity
15. Financial Position / ROE / Cost of Equity Interest-Bearing Debt / Net Assets / Equity Ratio ROE / Cost of Equity 25.0% Equity Ratio 38.9% 19.2% 18.4% 18.3% 36.9% 20.0% 18.0% 35.7% 39.2% 34.5% 15.0% ROE 11.5% 10.0% Cost of Equity (Estimated using CAPM) 9,760 11,145 5.0% 8,468 Net Assets 7,922 0.0
Slide 23: Progress on the Medium- to Long-term Vision First VISION 2031
Progress on ０2／ the Medium- to Long-term Vision “First VISION 2031” (Excerpt) Overview of First VISION 2031 – Phases – 16. Phase 1 Progress – Numerical Targets – 17. KPI Progress – Indicators and Targets Related to Human Capital – 18. KPI Progress – Medium- to Long-Term Vision Targets – 19. Progress
Slide 24: Overview of First VISION 2031 - Phases
Excerpt from the Medium- 3 to Long-term Vision Overview of First VISION 2031 －Phases－ Under First VISION 2031, we aim to boost profits by securing human resources and improving business efficiency through DX implementation and personnel development, to achieve our interim net sales target of 50.0 bi
Slide 25: Phase 1 Progress - Numerical Targets (Profit and Loss)
16. Phase 1 Progress – Numerical Targets – Numerical Targets: (1) Profit and Loss FY2026/5 FY2027/5 (Revised) FY2028/5 (Revised) ⚫ The first year of First VISION vs. FY2027 2031 got off to a strong start, (Unit: million yen) Plan Results vs. Plan Plan YoY Plan Plan with profit exceeding the initial
Slide 26: Phase 1 Progress - Numerical Targets (Gross Profit)
16. Phase 1 Progress – Numerical Targets – Numerical Targets: (2) Gross Profit FY2026/5 FY2027/5 (Revised) FY2028/5 (Revised) vs. FY2027 ⚫ For completed construction (Unit: million yen) Plan Results vs. Plan Plan YoY Plan Plan contracts, net sales are planned Net sales 40,000 36,417 91.0% 44,000 120
Slide 27: KPI Progress - Indicators and Targets Related to Human Capital
17. KPI Progress – Indicators and Targets Related to Human Capital – Indicators and Targets Related to Human Capital Fiscal year ended Fiscal year ended Fiscal year ending Fiscal year ending May 31, 2025 May 31, 2026 May 31, 2028 May 31, 2031 Results Results Medium-term Targets Long-term Targets Inc
Slide 28: KPI Progress - Medium- to Long-Term Vision Targets
18. KPI Progress – Medium- to Long-Term Vision Targets – Indicators and Targets Related to Human Capital Fiscal year ended Fiscal year ended Fiscal year ended May 31, 2025 May 31, 2026 May 31, 2026 Progress Results Plan Results Total employees 161 176 179 +1.7% Employees On-site employees 65 75 76 +
Slide 29: Progress of Priority Strategies
19. Progress of Priority Strategies Progress Future Direction Strengthening Promoted new graduate and mid-career recruitment, Continue recruitment and personnel development to human capital and with the number of employees exceeding the plan (179 support future business expansion, aiming to build a
Slide 30: Financial Results Forecast and Shareholder Returns
０3／ Financial Results Forecast and Shareholder Returns 20. Financial Results Forecast for the Fiscal Year Ending May 31, 2027 21. Shareholder Returns 22. Cash Allocation 23. Initiatives to Improve Capital Efficiency
Slide 31: Financial Results Forecast for the Fiscal Year Ending May 31, 2027
20. Financial Results Forecast for the Fiscal Year Ending May 31, 2027 Fiscal year ended May 31, 2026 Fiscal year ending May 31, 2027 YoY Results Forecast Amount % of Net Sales Amount % of Net Sales Change Change (Million yen) (Million yen) (Million yen) (%) Net sales 36,417 – 44,000 – 7,583 120.8%
Slide 32: Shareholder Returns
21. Shareholder Returns Policy on Return of Shareholder returns consist of year-end dividends and shareholder benefits Profit to Shareholders Dividends are determined based on a consolidated payout ratio of 30% or more, taking into consideration internal reserves and other factors Implement flexible
Slide 33: Cash Allocation
22. Cash Allocation In Phase 1, priority will be given to strengthening the management base using NOPAT as the primary funding source, while business investments will, in principle, be funded through external financing. This capital allocation balances maintaining ROE with growth investments. Phase
Slide 34: Initiatives to Improve Capital Efficiency
23. Initiatives to Improve Capital Efficiency ROE remains consistently above the cost of capital, despite temporary fluctuations in profit, and continues to improve. Continue investing in human capital and development while aiming to improve profitability and capital efficiency. Changes in Key Indic
Slide 35: Our Unique Business Model
Our Unique ０4／ Business Model 24. Hybrid Business Model That Combines Real Estate with Construction 25. First-corporation’s Unique “Zouchu” and “Joint Projects” 26. Competitive Advantage Created by the Synergy of Construction and Real Estate 27. Model Case: Up to 3 Revenue Opportunities per Project
Slide 36: Hybrid Business Model That Combines Real Estate with Construction
24. Hybrid Business Model That Combines Real Estate with Construction A unique entity that leverages its construction capabilities as a source of strength and generates its own projects (Zouchu). Construction Real estate Strengths of a hybrid business model Construction, quality, and on-site Land ac
Slide 37: First-corporation's Unique Zouchu and Joint Projects
25. First-corporation’s Unique “Zouchu” and “Joint Projects” Purchase and sell the land. The holding period ① Sale is generally very short. A business model prioritizes cash flow. Acquisition → Sale ② Zouchu We handle everything from land acquisition and sale to architectural planning and proposals,
Slide 38: Competitive Advantage Created by the Synergy of Construction and Real Estate
26. Competitive Advantage Created by the Synergy of Construction and Real Estate By holding both, we eliminate the low profitability associated with construction and the high risk associated with real estate. Condominium A typical real estate developer agency (Full-service real General contractor Fi
Slide 39: Model Case: Up to 3 Revenue Opportunities per Project
27. Model Case: Up to 3 Revenue Opportunities per Project Total sales 500 million Revenue from joint yen projects: 500 million yen 500 million yen Net sales of completed construction 1.5 billion yen contracts 2.5 billion yen 500 million yen 2.0 Real estate sales billion 2.0 billion yen yen Land sale
Slide 40: Business Portfolio and Overview
28. Business Portfolio and Overview Construction Real Estate Business Business A model that maximizes construction capacity by managing multiple sites A business portfolio that combines short-term, high-turnover strategies (focused simultaneously, while ensuring project turnover and stable cash flow
Slide 41: Real Estate Business Portfolio
29. Real Estate Business Portfolio (Payback Period × Revenue Characteristics) We operate a hybrid business model that combines construction and real estate businesses to achieve high capital efficiency. By combining short-term, high-turnover investments with medium- to long-term investments in our r
Slide 42: Sustainability
０5／ Sustainability 30. Basic Policy and Governance Framework 31. Materiality 32. Human Capital Policies 33. Basic Procurement Policy
Slide 43: Basic Policy and Governance Framework
30. Basic Policy and Governance Framework Basic Sustainability Policy The Group established “to contribute to enrichment of the living environment through the supply of higher quality homes” as its company creed and conducts business activities with the aim of fulfilling its social responsibility to
Slide 44: Materiality
31. Materiality ESG Material Issues Measures Relevant SDGs Addressing global warming Achieving greenhouse gas (CO2) emissions reduction targets and climate change issues Environment Initiatives helping build a Promoting the 4Rs recycling-based society Refuse Reduce Reuse Recycle Promoting the Well-b
Slide 45: Human Capital Policies
32. Human Capital Policies Human Resource Development Policy Training programs for general skills and technical skills ➢ General skills: Conduct training in all departments by employee year level and rank to enable employees to acquire the knowledge they require (Examples: training in business etiqu
Slide 46: Basic Procurement Policy
33. Basic Procurement Policy Basic Procurement Policy Compliance with laws and Comply with applicable laws, regulations, and social norms in conducting business activities. social norms Fair and impartial business Select business partners through a comprehensive evaluation of quality, safety, cost,
Slide 47: Company Overview
０6／ Company Overview Company Overview Corporate History
Slide 48: Company Overview
Company Overview Company name First-corporation Inc. Business General contractor Address 30-16, Ogikubo 4-chome, Suginami-ku, Tokyo, Japan Condominium construction business Toshiaki Nakamura President and Chief Executive Officer primarily within the Tokyo metropolitan area Representative (comprising
Slide 49: Corporate History
Corporate History 2011 2015 2020 2025 June 2011 March 2015 November 2020 January 2026 「First-corporation Inc.」 Becomes listed on the TSE Mothers market Construction of the first redevelopment property starts Launches the medium- founded to long-term vision October 2015 First VISION 2031 September 20
Slide 50: Notes Regarding This Presentation
Notes Regarding This Presentation The information contained in this presentation, other than historical or current facts, reflects the Company’s judgments based on information currently available to the Company and certain assumptions. Such assumptions and judgments are subject to uncertainties and
Slide 51: Performance forecasts and future outlook assumptions
The performance forecasts and future outlook presented in this document are based on assumptions and expectations made using the information available to First-corporation Inc. as of the time of publication. Actual performance may differ from these forecasts due to changes in factors such as economi